Ennabe v. Manosa

In Ennabe v. Manosa (2014) 58 Cal.4th 697, the court applied section 25602.1 of the Business and Professions Code, which states that a person "who sells, or causes to be sold, any alcoholic beverage, to any obviously intoxicated minor" can be liable for resulting injuries or death. (See Ennabe, at pp. 702, 709-710.) The court considered whether the defendant could be held liable under the provision where she supplied alcohol to a minor at a party, and the minor was charged a fee to enter the party. (Ibid.) The statute considered in Ennabe is part of the Alcoholic Beverage Control Act (Bus. & Prof. Code, 23000 et seq.), which defines a sale to include "any transaction whereby, for any consideration, title to alcoholic beverages is transferred from one person to another." (Bus. & Prof. Code, 23025; see Ennabe, at p. 714.) In interpreting the statute, Ennabe noted it was unclear whether a rule of liberal or strict construction was applicable, because both rules applied under different principles of statutory interpretation. (Ennabe, supra, 58 Cal.4th at pp. 713-714.) Turning to the statutory language, Ennabe stated, the "broad definition of a sale shows the Legislature intended the law to cover a wide range of transactions involving alcoholic beverages: a qualifying sale includes 'any transaction' in which title to an alcoholic beverage is passed for 'any consideration.' (Italics added.) Use of the term 'any' to modify the words 'transaction' and 'consideration' demonstrates the Legislature intended the law to have a broad sweep and thus include both indirect as well as direct transactions." (Ennabe, at p. 714.) The court concluded "the plain meaning of a 'sale,' as defined in Business and Professions Code section 23025 and used in Business and Professions Code section 25602.1, includes the minor's payment of the entrance fee for the defendant's party, irrespective of the fact possession of a particular drink did not occur immediately upon payment." (Ennabe, at p. 715.) Ennabe cited with approval a 1985 Attorney General opinion that is more analogous to the present case. (Ennabe, supra, 58 Cal.4th at pp. 716-717.) In that opinion, the California Attorney General interpreted liquor licensing laws with respect to commercial enterprises that offer "complimentary" alcoholic beverages to paying customers who purchase another good or service. (Offer of "Complimentary" Alcoholic Beverage is "Sale," 68 Ops.Cal.Atty.Gen. 263 (1985) (Opinion No. 85-701).) The Attorney General was asked, "May the operator of a commercial enterprise who does not have an alcoholic beverage license legally offer and provide 'complimentary' alcoholic beverages to any interested adult guest, customer or passenger of the business or service, without specific charge while at the same time charging for the product provided or the services rendered?" (Id. at p. 263.) Considering analogous out-of-state authority, the Attorney General concluded that "complimentary" alcohol is in fact "sold," even though the operators do not charge additional amounts to customers who elect to consume alcohol. (Id. at pp. 265-267.) As the opinion explained, " 'It is wholly immaterial that no specific price is attached to those articles separately.' ... The furnishing of the beverages, although denominated 'complimentary', are for a consideration and constitute a sale within the meaning of California's Alcoholic Beverage Control Act." (Id. at p. 267; accord, Ennabe, at p. 717.) To hold otherwise would undermine the Legislature's intent to regulate the provision of alcoholic beverages. (Opn. No. 85-701, at p. 267.)